Single labourer - CIS required??

[ray-bentos]

Hello

Can someone please point me in the right direction with regards CIS and my business? Please be gentle as this is my first foray into the realms of CIS, having previously being employed and since then being self employed (doing 'jobs' as opposed to subcontracting work which would fall under the realm of CIS)

Things have been quite good recently, touch wood, and I am in the process of starting using a labourer. I have a local guy, he is already registered as self employed with UTR for tax purposes, who is willing to come work for me for a couple of days a week on an 'as & when needed' basis.

I presume this will amount to probably max 2-3 days per week at present, and not necessarily that amount each week neither.


My intention, was to pay him hourly for his labour.

Now my worry is that this will fall under the realms of CIS and as such I will have to register as a contractor. The reason I am averse to this is the extra paperwork/red tape and the requirement to file a monthly return, even if I do not end up using him long term, this being a serious headache to my already overstretched admin side of things.


Can anyone advise as to the specifics of this, and how it may affect me? Also if CIS is a threat, is there any alternative method of 'engaging/employing/paying' this guy that may avoid this?

 

[Eco Chap]

We're at a similiar point to be honest. It seems to be a bit of a minefield/ballache but from what Ive been told CIS is pretty unavoidable. Our guy is self employed too but were required to register him into the CIS record the hours he works and deduct the relevant tax before paying him. Were then required to pass on any tax by the same time every month else risk being fined.

We subby ourselves as an outfit out a lot too which gets even more awkward as the paying contractor should be registered under CIS and be deducting our tax of of the gross payments. Have you spoke to your accountant? Im sure its fairly manageable to process everything yourself but we opted to paying the accountant to do it in the end (i prefer my time on site then infront of the puter )

 

[Leesparkykent]

Have a look at hudsons contract services.

 

[Octopus]

Get the subby to invoice the client directly? CIS is best avoided!

 

[uksparks]

i had a very brief 2 day altercation with CIS a year or two ago. All I say is, never again! I thought being a limited business invoicing another limited business for services, it would have been completely irrelevant as i am on PAYE.

 

[Short Circuit]

Ray, I have been paying the CIS for subbies for a few year now, and although you are right it is a right pain in the backside, once you get into it it's easy to do. I ended up with a few £100 fines when I started it for late submissions to the HMRC website, ie a day late!
I also get the CIS deducted for me from other people so it balanced itself out!
However, you do need to be careful if you are using the same guy regularly as it may fall into the realms of PAYE. I think you can bypass this if he works adhoc, or gives you the odd price for jobs he is doing with you

 

[assegayer]

Just give him cash in hand end of the day tax is his problem

 

[marc8]

we use the accountant for all VAT, CIS, PAYE, end of yesar accounts the lot.
got a good monthly deal on the whole thing I just send them the invoices they process the rest.

 

[johnsparks23]

I'm registered as a contractor, my account charges me a fee (small) to submitt my monthly return, then a fee for every Subby I use.

 

[Leesparkykent]

i had a very brief 2 day altercation with CIS a year or two ago. All I say is, never again! I thought being a limited business invoicing another limited business for services, it would have been completely irrelevant as i am on PAYE.

why? all that happened is the tax gets stopped at source.

 

[marc8]

Just been speaking with someone about the guild, should you have any long term subbies working on your behalf, never used them don't know anything about it just someone told me about them.